Most Americans don’t sell their old smartphones: privacy concerns and perceived low resale value

While trade-in deals are widely available and the refurbished smartphone market is booming, most consumers prioritize other factors when purchasing new devices. Only 23% of respondents consider resale value, underscoring diverse priorities based on individual needs and concerns.

Privacy concerns hold consumers back 

For many, the perceived challenges of selling used phones outweigh the potential benefits. One-third of respondents (33%) felt the resale price wasn’t worth the effort, while 31% expressed concerns about data privacy. Additionally, 26% of participants were apprehensive about whether their data could be completely removed from their devices.

According to CNET these fears are not unfounded. With over 1,500 data breaches reported in the first half of 2024 alone, consumers are understandably cautious. In response, manufacturers like Apple and Samsung have enhanced their devices’ privacy features, but skepticism remains a significant barrier to smartphone resales.

Environmental and financial impact of unused phones 

The reluctance to resell old smartphones contributes to mounting electronic waste. According to a 2024 UN report, mobile phones account for 62 million metric tons of discarded devices annually, a figure projected to increase by 33% by 2030. Selling used smartphones not only provides extra cash but also extends the devices’ lifespan, reducing their environmental impact.

The secondary smartphone market in the US, valued at US$ 8.67 billion in 2023, is expected to grow to US$ 26.67 billion by 2031, showcasing the untapped potential for consumers to benefit financially while promoting sustainability.

Confidence in resale value varies by brand and generation 

Consumer confidence in the resale value of their smartphones plays a crucial role in influencing resale decisions. Surprisingly, LG owners reported the highest confidence (49%), surpassing Apple (42%) and Samsung (34%) users, despite LG exiting the smartphone market in 2021.

Generational differences were also evident, with younger consumers more likely to express confidence in resale value. Nearly half of Gen Z (47%) and millennials (43%) reported confidence, compared to 34% of Gen X and just 23% of boomers. Among the latter two generations, more than half admitted they had never considered resale value when purchasing a new phone.

Resale awareness could unlock benefits for consumers 

The survey results highlight an opportunity for consumers to maximize the value of their smartphones through resale. Improved education about the resale process, strengthened privacy protections, and increased awareness of environmental benefits could encourage more Americans to participate in the growing secondary smartphone market.

Source: CNET